Rake blames lawyers for missing out on Andersen
KPMG's legal advice on acquiring troubled firm 'proved to be wrong'
KPMG's legal advice on acquiring troubled firm 'proved to be wrong'
KPMG senior partner Mike Rake has said that his greatest disappointment is
not buying Andersen.
In a wide-ranging and frank interview with Accountancy Age this
week, Rake looked back on eight years in his job and said he wished he had
relied less on legal advice and bought Andersen in 2002.
‘My biggest single disappointment is that I would have liked to have seen us
taking on Andersen in the UK. The legal advice we got proved to be wrong.’
KPMG and other firms were advised that Enron investors might seek to sue
firms that took on Andersen for damages incurred. Deloitte, which took on
Andersen UK, has never seen any legal action as a result of Enron.
Separately, Rake declares that his successor will see KPMG overtake Deloitte
‘in the next couple of years’, and challenges the profession’s next generation
of leaders to resolve the issue of regulation.
‘We have to have strong independent regulation of the profession. You can’t
have the institute. It tried to be a trade association and a regulator. Bluntly,
I think it failed at both,’ he said.
Rake also offers advice to the leaders of mid-tier firms on how to challenge
the Big Four, a process that, if it happens, will take ten years at least, he
says.
Rake will step down as senior partner in September, but remain international
chairman.
Of his future plans, he said: ‘Family life might be one option. I would like
to get some balance [back]. Something with an international background would be
interesting.’
The numbers you crunch tell a story. Your expertis...
18yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThree years after accountancy group DJH Mitten Clarke launched, they have announced that they have rebranded to DJH. The DJH Mitten Clarke name reflec...
View articleStatic budgets outdated. Embrace agile budgeting for a smooth year-end close and adapt to changing markets. Read More...
View articleSaffery Champness's strategic rebrand to "Saffery" reflects a bold step towards aligning its historic values with a modern, innovative ethos, fosterin...
View articleSumer’s CEO Warren Mead believes accountants have a responsibility to champion smaller and medium-sized businesses and that successful entrepreneurs a...
View articleMid-market firms experience largest percentage increase in fee income in 2023, as consultancy services start to become leading income streams for the ...
View articleBaker Tilly International has today announced record global revenues of US$5.2bn for the financial year ended 31 December 2023, up 11% on the previous...
View articleWhilst Small and Medium Enterprises (SMEs) account for around half of the turnover in the UK private sector[1], our own AAT research shows that over a...
View articleGrant Thornton UK as confirmed the appointment of Malcolm Gomersall as its new Chief Executive Officer. Gomersall, who has been with the firm for over...
View article